Successful investing is not, per se, a portfolio problem, but rather a people problem. No matter how well designed and engineered a portfolio is, it can easily be destroyed by imprudent investor behavior.
Unfortunately, the true enemy of every investor lies within.
The instincts, emotions, and even biochemical makeup of human beings drives them to gamble and speculate with their money, even when they don’t mean to. This problem is multiplied exponentially by financial institutions that profit from this self-destructive cycle. You will see that this cycle is hard wired into every human being in the world. No one is exempt.
After studying the collective behavior of thousands of real world investors over the past decade, several truths have made themselves clear. It is my belief that many, if not most financial product sponsors are aware of this dilemma,
but either don’t care that the investor is harmed by it,
or are ignorant of the damage that they unknowingly perpetrate on the American investor.
To succeed in investing you must own equities……globally diversify….rebalance.
- Stocks dive: keep calm and carry on (cbsnews.com)
- Ask the Advisor: How Confirmation Bias Can Affect Your Investment Strategies (savings.com)
- The Cost of Emotional Investing (forbes.com)